0 Required information [The following information applies to the questions displayed below.] The trial balance for Terry's Auto Shop as of January 1. Year 2, follows: Account Titles Debit Credit Cash $14,810 Inventory 3,020 Common Stock $ 7,350 Retained Earnings 10,480 Total $17,830 $17,838 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,280. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $230 cash. 3. Returned $440 of damaged merchandise for credit on account 4. Agreed to keep other damaged merchandise for which the company received an $275 allowance. 5. Sold merchandise that cost $2,710 for $13,200 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $125 cash. 7. Paid $2,810 on the merchandise purchased in Event 1. 8. Paid $8,720 cash for operating expenses. c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.) Complete this question by entering your answers in the tabs below. Income Statement of Statement Balance Sheet Cash Flows Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 0 $ 0 Income Balance Sheet > nces 3 # # # # # # # # # # # # # # # # # anil mantate that in antrine hann Required information . Part 3 of 4 Income Statement Balance Sheet Statement of Cash Flows 10 points Prepare a balance sheet. 0400 ARRY'S AUTO SHOP Balance Sheet As of December 31, Year 2 Assets eBook 09 Hint $ 0 Total assets Liabilities Ask $ 0 Total liabilities Stockholders' equity References Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ 1 nces 3 # # # # # # # # # # # # # # # # # anil mantate that in antrine hann Required information . Part 3 of 4 Income Statement Balance Sheet Statement of Cash Flows 10 points Prepare a balance sheet. 0400 ARRY'S AUTO SHOP Balance Sheet As of December 31, Year 2 Assets eBook 09 Hint $ 0 Total assets Liabilities Ask $ 0 Total liabilities Stockholders' equity References Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ 1